On September 29, 2003, Snyder was critically injured after the Ferrari 360 Modena being driven by his friend and teammate Dany Heatley struck a wall along Atlanta's Lenox Road. Both players were ejected from the car, which was split in half by the force of the impact. Snyder suffered a fractured skull and internal brain injuries due to the rapid acceleration/deceleration incident. He died six days later on October 5 as a result of his injuries complicated by a subsequently-acquired infection.

Heatley was charged with vehicular homicide as a result of the crash. He pleaded guilty to second-degree vehicular homicide, driving too fast for conditions, failure to maintain a lane, and speeding. He was sentenced to three years probation and ordered to give 150 speeches on the dangers of speeding for his crime.

During the 2006–07 NHL season Dan's parents, Graham and Lu Ann Snyder, travelled across North America in an RV attending NHL games and speaking at engagements to raise awareness for the Dan Snyder Memorial Foundation.
In 2003, Canadian band The Tragically Hip recorded a song called "Heaven Is a Better Place Today" in honour of Dan Snyder. The song appears on their In Between Evolution album.